An empty pool might seem like no big deal, but it doesn’t do much to propel a loan forward because of the challenges it presents. What are the risks?
Someone can fall in and break a [fill in the blank].- Standing water is an invitation for mosquitos, which then increases the risk for mosquito-transmitted diseases such as West Nile Virus.
- The swimming pool could sustain damage from not being filled over time.
- Lastly, how can you really know if a pool is working properly if it’s empty?
I recommend talking with a trusted loan professional to understand specific lending guidelines, but I will say in light of the risks above, most lenders will want to see pools filled and functioning properly because of the health and safety risks associated with an empty pool. I’ve had a couple of instances lately for both FHA and conventional loans where my client wanted me to head back out to verify repairs were made to a pool (after I noted green water and/or missing pool equipment). I am not a pool specialist of course, so I am very careful about what I can and cannot verify as a real estate appraiser.
I’d be curious to hear your experience with pools and real estate, and also if you have any other risks to add to the list above.
If you have any real estate appraisal, consulting, or property tax appeal needs in the Greater Sacramento Region, contact me at 916.595.3735, by email, on our appraiser website or via Facebook.
The biggest misconception that most people have about condos is that if it’s not on FHA’s list of approved condos, there is no way to do an FHA loan with that condo. Here at Mason McDuffie we have a special department that focuses on condo lending and helping buyers and realtors navigate through the unique aspects of condos loans. When a condo isn’t approved, we can do what’s called a spot approval. The process works much like an underwriter approving a loan. We will gather all the needed documentation and look at the project to make sure it’s a healthy and successful project. The last thing that we want is one of our buyers purchasing a unit in a complex that isn’t collecting enough funds (HOA dues) to support the maintenance and repairs or isn’t putting enough money into their reserve accounts. If the condo is on the FHA approved list already, it’s actually a quick and simple process to complete the loan. Here are a few things we need to verify: 1) To make sure the complex isn’t involved in any litigation; 2) That the delinquency rate is below 15%; and 3) That there is proper insurance on the condo project. This is something we collect for everyone to make sure everything is in order. If you have any questions, call my cell at 916-798-1234, office at 916-266-4181 or